Due to this global pandemic, the year 2020 brought on unprecedented changes to our daily lives and routines.
Even as that historic year wraps up, its impact remains visible in 2021. The IRS recognized the impact this past year has had on Americans, and therefore made the decision to change the date of Tax Day in 2021.
Some Americans are speculating that this Tax Day extension could return in 2022 for the 2021 Tax season, however I would advise against making any assumptions at this time.
We should assume that for the 2021 fiscal year, Tax Day will again return to its April 15 deadline; so, what can you do to prepare?
While it can be tempting to procrastinate on filing your taxes (because if we are being honest, tax season is not always smooth sailing or a walk in the park), there are in fact benefits to filing your taxes early.
The 2021 tax season may very well be the right time for you to begin to consider “how early can I file my taxes in 2021” and take advantage of early tax filing.
How Early Can I File My Taxes in 2021?
Many people are wondering: when is the earliest to file taxes?
As much as I wish I could give you a fixed date to the question of how soon can you file taxes for the 2021 tax year, the answer is actually dependent on a variety of individual factors.
However, I will suggest you highlight the last week of January 2022 on your calendar, as this is likely when you will get the proper documentation and the go ahead from the IRS to begin filing your early tax filing.
Income Documentation
First and foremost, in order to file your taxes at any date, early or on time, you need the proper documentation.
When figuring out how early you can file taxes 2021, you first need to ensure you have your W-2 form from your employer that states how much income you made in 2021. You can anticipate receiving this W-2 form from your employer on or before Monday January 31st, 2022.
So, the first answer to the question “how early can you file taxes 2021” is when you get your W-2, which could be at the latest, January 31st.
When Tax Filing Begins
This IRS begins to accept tax returns around the last week of January, so stay tuned for more information from the IRS about what exact day in January 2022 they will begin to process early tax filing from taxpayers.
As we know from the 2020 tax year, this date is subject to change. In 2021, the IRA started processing tax returns on February 12, 2021, which was unusually late in comparison to previous years.
While you cannot submit any tax returns before the IRS begins to accept them, that does not mean you cannot at least get your affairs in order to be ready to file your taxes as soon as you can.
Early Tax Filing: What are the Advantages?
Americans who are wondering how early can you file taxes 2021 are likely interested in receiving their tax return in a timely manner too.
The IRS delivers the large majority of their tax refunds in 21 days or less, following the date that the taxpayer’s taxes were filed.
So, file early to make that 21 day tax return process pass sooner rather than later!
However, keep in mind that opting for your tax refund to be mailed to you can delay the process of your money getting to you in a fast and efficient way.
My recommendation for earlier filers who want a fast refund? Use e-filing and sign up for direct deposit to avoid the slower mailing process and get your return deposited straight into your bank.
Furthermore, if you are eager about how soon you can file taxes, you are greatly reducing your chances of missing the Tax Day deadline. Being prepared and timely helps you avoid the undesirable position of needing to owe interest or penalties for not paying your taxes on time!
The Bottom Line
To know for sure how early can you file taxes 2021, you are going to have to wait until the IRS issues a statement.
The IRS will set a date as to when they will begin to accept 2021 taxes from early tax filers. You can estimate this date will occur around mid to late January 2022.
In the meantime, you can start to prepare now!
Take some time to decide how you intend to file your taxes (for example, e-filing or working with an accountant), to collect your receipts and documentation for your eligible tax write-offs, and to understand which forms you will need to complete so that you can be ready for how soon you can file your taxes for the 2021 tax season.
